# No one can solve this!! if you solve this, your a genius! 10 points!?

Question by mamz123: No one can solve this!! if you solve this, your a genius! 10 points!?
An electronics firm manufactures portable DVD players, receiving \$ 120 for each unit it makes. If x represents the number of units produced, the income received is determined by the revenue funtion R(x)=120x. The manufacturer has fixed costs of \$ 12, 000 per month and variable costs of \$ 57.50 for each unit manufactured. Thus, the cost function is C(x)= 57.50x + 12,000. How many DVD players must the company sell for revenue to equal cost?

**Please answer correctly, and show steps! Thanks!

easy 2

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1. Rocker says:

The answer is 245
How?
12 + 12 + 200 + 21= 245

SIMPLE and EASY TO UNDERSTAND!
Do not ask such easy questions again.

2. zeuz says:

x = 12,000 / 62.5

3. princess p says:

\$ 120x+\$ 12000=Cx

4. Zelda says:

Set the revenue function equal to the cost function and solve for x

R(x) = C(x)

120x = 57.50x + 12,000

62.5x = 12,000

x = 12,000/62.5

x = 192

They need to sell 192 DVD players for revenue to equal cost.

5. onetimeatchurchcamp says:

to break even the company must sell 192 dvd players. it works best if you use a graphing calculator. you have to consider that even though they bring in \$ 120 for each unit, \$ 57.50 is lost in cost of production. so truly their net gain is \$ 62.50 per unit. \$ 12000 is the amount they need to sell in order to cover their costs alone. so if you graph a horizontal line of y=12000 and the revenue line of y=62.5x and find the intersection point, you will see that it takes 192 dvd players to bring in \$ 12000.
hooray for being a genius :)

6. JaH` says:

120x= 57.50x+12,000
62.5x/62.5=12,000/62.5
x=192

to check:

120(192)= 57.50(192)+12,000
23,040=11,040+12,000
23,040=23,040

7. Jun Agruda says:

Monthly break-even units of production and sales (x):
\$ 120.00x = \$ 12,000.00 + \$ 57.50x
\$ 62.50x = \$ 12,000.00
x = 192

Proof (Revenue less expenses = no income no loss, \$ 0.00)
= (192 units[\$ 120.00]) – (\$ 12,000.00 + 192 unit[\$ 57.50])
= \$ 23,040.00 – (\$ 12,000.00 + \$ 11,040.00)
= \$ 23,040.00 – (\$ 23,040.00)
= \$ 23,040.00 – \$ 23,040.00
= \$ 0.00

Another way is by contribution margin:
Formula:
= fixed cost/(price per unit – variable cost per unit)

Applied:
= \$ 12,000.00/(\$ 120.00 – \$ 57.50)
= \$ 12,000.00/\$ 62.50
= 192